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Reportable Segments | 12 Months Ended
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Dec. 31, 2018
Reportable Segments |
Reportable Segments | 16. Reportable Segments The Company operates in two reportable business segments: (i) Leasing and Related Operations which involves acquiring and leasing, primarily pursuant to operating leases, commercial aircraft, aircraft engines and other aircraft equipment, the selective purchase and resale of commercial aircraft engines and other aircraft equipment, and engine management and (ii) Spare Parts Sales which involves the purchase and resale of after-market engine and airframe parts, whole engines, engine modules and portable aircraft components. The Company evaluates the performance of each of the segments based on profit or loss after general and administrative expenses. While the Company believes there are synergies between the two business segments, the segments are managed separately because each requires different business strategies. During the second quarter of 2018, the Company moved certain sales of leased equipment parts to the Spare Parts Sales segment from the Leasing and Related Operations segment and had no change in the determination of operating segments. In accordance with ASC 280-10, the Company has restated prior period information presented below to reflect this change in composition of its reportable segments. The following tables present a summary of the reportable segments (in thousands):
|  | Leasing and |  |  |  |  |  |  |  |
For the year ended December 31, 2018 |  | Related Operations |  | Spare Parts Sales |  | Eliminations |  | Total
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
Lease rent revenue |  | $ | 175,609 |  | $ | — |  | $ | — |  | $ | 175,609
Maintenance reserve revenue |  |  | 87,009 |  |  | — |  |  | — |  |  | 87,009
Spare parts and equipment sales (1) |  |  | 30,122 |  |  | 41,019 |  |  | — |  |  | 71,141
Gain on sale of leased equipment (1) |  |  | 6,944 |  |  | — |  |  | — |  |  | 6,944
Other revenue |  |  | 7,579 |  |  | 1,727 |  |  | (1,662) |  |  | 7,644
Total revenue |  |  | 307,263 |  |  | 42,746 |  |  | (1,662) |  |  | 348,347
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization expense |  |  | 76,502 |  |  | 312 |  |  | — |  |  | 76,814
Cost of spare parts and equipment sales (1) |  |  | 28,290 |  |  | 32,735 |  |  | — |  |  | 61,025
Write-down of equipment |  |  | 10,651 |  |  | — |  |  | — |  |  | 10,651
General and administrative |  |  | 67,608 |  |  | 4,413 |  |  | — |  |  | 72,021
Technical expense |  |  | 11,142 |  |  | — |  |  | — |  |  | 11,142
Net finance costs |  |  | 64,220 |  |  | — |  |  | — |  |  | 64,220
Total expenses |  |  | 258,413 |  |  | 37,460 |  |  | — |  |  | 295,873
Earnings from operations |  | $ | 48,850 |  | $ | 5,286 |  | $ | (1,662) |  | $ | 52,474
|  | Leasing and |  |  |  |  |  |  |  |
For the year ended December 31, 2017 |  | Related Operations |  | Spare Parts Sales |  | Eliminations |  | Total
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
Lease rent revenue |  | $ | 130,369 |  | $ | — |  | $ | — |  | $ | 130,369
Maintenance reserve revenue |  |  | 80,189 |  |  | — |  |  | — |  |  | 80,189
Spare parts and equipment sales (2) |  |  | 22,285 |  |  | 29,138 |  |  | — |  |  | 51,423
Gain on sale of leased equipment (2) |  |  | 4,458 |  |  | 471 |  |  | — |  |  | 4,929
Other revenue |  |  | 7,702 |  |  | 1,601 |  |  | (1,373) |  |  | 7,930
Total revenue |  |  | 245,003 |  |  | 31,210 |  |  | (1,373) |  |  | 274,840
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization expense |  |  | 65,677 |  |  | 346 |  |  | — |  |  | 66,023
Cost of spare parts and equipment sales (2) |  |  | 17,344 |  |  | 23,504 |  |  | — |  |  | 40,848
Write-down of equipment |  |  | 24,930 |  |  | — |  |  | — |  |  | 24,930
General and administrative |  |  | 52,024 |  |  | 3,713 |  |  | — |  |  | 55,737
Technical expense |  |  | 9,729 |  |  | — |  |  | — |  |  | 9,729
Net finance costs |  |  | 48,720 |  |  | — |  |  | — |  |  | 48,720
Total expenses |  |  | 218,424 |  |  | 27,563 |  |  | — |  |  | 245,987
Earnings from operations |  | $ | 26,579 |  | $ | 3,647 |  | $ | (1,373) |  | $ | 28,853
|  | Leasing and |  |  |  |  |  |  |  |
For the year ended December 31, 2016 |  | Related Operations |  | Spare Parts Sales |  | Eliminations |  | Total
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
Lease rent revenue |  | $ | 119,895 |  | $ | — |  | $ | — |  | $ | 119,895
Maintenance reserve revenue |  |  | 57,091 |  |  | — |  |  | — |  |  | 57,091
Spare parts and equipment sales (2) |  |  | 3,335 |  |  | 14,448 |  |  | — |  |  | 17,783
Gain on sale of leased equipment (2) |  |  | 3,246 |  |  | 236 |  |  | — |  |  | 3,482
Other revenue |  |  | 8,711 |  |  | 1,947 |  |  | (1,635) |  |  | 9,023
Total revenue |  |  | 192,278 |  |  | 16,631 |  |  | (1,635) |  |  | 207,274
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization expense |  |  | 65,939 |  |  | 341 |  |  | — |  |  | 66,280
Cost of spare parts and equipment sales (2) |  |  | 2,394 |  |  | 10,899 |  |  | — |  |  | 13,293
Write-down of equipment |  |  | 9,514 |  |  | — |  |  | — |  |  | 9,514
General and administrative |  |  | 44,703 |  |  | 3,077 |  |  | — |  |  | 47,780
Technical expense |  |  | 6,993 |  |  | — |  |  | — |  |  | 6,993
Net finance costs |  |  | 40,813 |  |  | 468 |  |  | — |  |  | 41,281
Total expenses |  |  | 170,356 |  |  | 14,785 |  |  | — |  |  | 185,141
Earnings from operations |  | $ | 21,922 |  | $ | 1,846 |  | $ | (1,635) |  | $ | 22,133
Total assets as of December 31, 2018 |  | $ | 1,882,860 |  | $ | 52,083 |  | $ | — |  | $ | 1,934,943
Total assets as of December 31, 2017 |  | $ | 1,556,406 |  | $ | 47,025 |  | $ | — |  | $ | 1,603,431
| (1) |  | Effective January 1, 2018, the Company adopted ASC 606 – Revenue from Contracts with Customers and has identified the transfer of engines and airframes from the lease portfolio to the Spare Parts segment for part out as sales to customers in accordance with the ordinary operations of our Spare Parts reportable segment. As such, the Company presents the sale of these assets on a gross basis and have reclassified the gross revenue and costs on sale to the Spare parts and equipment sales and Cost of spare parts and equipment sales line items from the net gain (loss) presentation within the Gain on sale of leased equipment line item.
| (2) |  | The Company adopted ASC 606 on January 1, 2018, using the modified retrospective approach applied only to contracts not completed as of the date of adoption, with no restatement of comparative periods. Therefore, the comparative information has not been adjusted and continues to be reported under ASC Topic 605 – Revenue Recognition.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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